IFRS Summary

20 Sep 2007 07:01

Hardy Oil & Gas plc20 September 2007 For Immediate Release 20 September 2007 Hardy Oil and Gas plc ("Hardy") Hardy Restates Its 2006 Financial Information under IFRS Hardy Oil and Gas plc (AIM:HDY) is pleased to announce that it has restated itsfinancial information for the year ended 31 December 2006 and for the six monthsended 30 June 2006 under International Financial Reporting Standards (IFRS) asrequired under the rules of the Alternative Investment Market of the LondonStock Exchange. It has also restated its opening balance sheet at the transitiondate of 1 January 2006 under IFRS. Summarised below are the consolidated financial results of Hardy under IFRS ascompared to previously issued UK Generally Accepted Accounting Principles (UKGAAP) for the year ended 31 December 2006: (Millions of US Dollars, UK GAAP Effect of Transition to IFRS IFRSexcept per share amounts) Income StatementRevenue 21.32 - 21.32Gross Profit 12.94 3.18 16.12Operating Profit 8.24 3.18 11.42Profit before Taxation 10.25 3.18 13.43Profit for the Year 7.99 2.24 10.23 Earnings per ShareBasic 0.14 0.04 0.18Diluted 0.13 0.04 0.17 Balance SheetNet Assets 83.16 8.24 91.40 Principal differences as a result of restatement of results from UK GAAP to IFRSfor Hardy are as follows: 1. Pre-exploration expenditures which were capitalized under UK GAAP are expensed under IFRS. 2. Under UK GAAP, unsuccessful exploration costs were transferred from intangible fixed assets to tangible fixed assets and depletion based upon the unit of production method. Under IFRS, unsuccessful exploration costs are capitalised under intangible assets - exploration pending a determination of whether or not commercial reserves exist. 3. Depletion expense under IFRS has been reduced as a result of 2 above compared to UK GAAP. Depletion expense under IFRS is determined on a field by field basis as compared to on a cost pool basis under UK GAAP. 4. Investments are stated at fair value and the differences are adjusted in equity - other reserves. 5. Appropriate deferred tax adjustments have been made as a result of reduction of depletion in the income statement. Deferred tax is also provided on unrealised gains on investments and charged to equity - other reserves. Hardy has continued to follow its existing full cost accounting policy for oiland gas assets to both exploration and appraisal activity and the assets in thedevelopment and production phases except those described above. The restatement has resulted in an increase in profit before taxation and profitfor 2006. It has also increased the carrying value of net assets by $8.24million as at 31 December 2006. Hardy will utilize IFRS in reporting its results in the future commencing withthe interim results for the six months ended 30 June 2007 which will beannounced on Monday, 24 September 2007. For further information, please contact: Hardy Oil and Gas plc 020 7471 9850Dinesh Dattani, Finance Director Arden Partners plc 020 7398 1632Richard Day Buchanan Communications 020 7466 5000Mark EdwardsBen Willey This information is provided by RNS The company news service from the London Stock Exchange